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The Disadvantage of Using an Interest Only Line of Credit

question 74

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The disadvantage of using an interest only line of credit is the considerably longer time it takes to repay the loan in comparison to a traditional consumer installment loan.


Definitions:

General Form

A way of expressing something that is not specific to any particular case but can apply broadly across instances.

Equation

A claim within mathematics that equates two expressions as being identical.

Perpendicular

Describes two lines, planes, or surfaces meeting at a right angle (90 degrees).

Horizontal Line

A straight line with no slope, moving left to right parallel to the x-axis in Cartesian coordinates.

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